Borders Cuts Ties To Amazon, Opens New Internet Store

May 27, 2008 12:39 p.m. EST

New York, NY (AHN) - Borders announced Tuesday it will strike out on its own online, marking the end of a seven-year alliance with Internet retail giant Amazon. An executive of the No. 2 bookseller said the time was right to open an independent online storefront.

As part of the new store, Borders is also offering two new partnerships. A deal with e-tailer Alibris and audio book provider Overdrive might have conflicted with Border's agreement with Amazon, which sells books, videos, music and e-books.

In 2001, Borders gave up its e-commerce site, opting to send customers to Amazon. In 2006, Toys-R-Us, which had a similar deal with Amazon for toy sales, also branched out on its own.

Last week, fellow bookseller Barnes & Noble announced it was mulling a possible sale, something Borders is also reportedly considering.